PRESS RELEASE
MN sets a noteworthy example for all investors, one month before Shell’s AGM
Dutch investor MN will vote in favour of the Follow This climate resolution (resolution 23), co-filed by 27 investors, the asset manager announced on the PRI website. MN’s main explanation is that Shell’s 20-30% LNG growth doesn’t align with the Paris Climate Agreement (full statement below).
The pre-declaration is highly significant since MN leads the engagement with Shell on behalf of the Climate Action 100+, the multi-trillion investor alliance urging the world’s largest emitters to cut CO2-emissions.
“With this pre-declaration, MN is basically urging all CA100+ members to vote for as well in order to give their lead engager greater leverage at Shell,” says Mark van Baal of Follow This, the shareholder group that filed the climate resolution with 27 investors. In 2023, after the votes stagnated at 20%, Shell backtracked on climate targets, demonstrating that one fifth of the votes is not enough to compel the board.
Additionally, the asset manager will vote against Shell’s board remuneration (resolution 2) and energy transition strategy (resolution 22) on behalf of Dutch pension fund PMT.
“If CA100+ members want to leverage the engagement position of their lead at Shell, they will need to vote in favour of Paris-aligned targets,” says Mark van Baal, founder of Follow This, “a vote against would undermine their lead’s engagement as we saw when Shell backtracked.”
“The pre-declaration creates a litmus test for the credibility of the CA100+: the number of members who will cast their votes with their lead investor rather than the board of Shell.”
“We thank MN for their determination to achieve the Paris goals, as well as their recognition that engagement and voting are not mutually exclusive (as oil companies frequently claim), but rather strengthen each other.”
Full text of MN’s statement
“We will vote FOR this advisory resolution, the responsibility for determining the strategy lies with the executive committee and the board of the company. The advisory resolution filed by 27 shareholders, supports our goal to align our portfolio with the Paris Climate Agreement. We share the company’s new ambition to lower scope 3 emissions from the oil products the company sells with 15-20% by 2030. However, the scope 3 reductions will be offset by growth in fossil LNG production of 20-30% by 2030. We do not believe this level of fossil LNG growth aligns with pathways to the Paris Climate Agreement.”
Sources
MN on the PRI platform: Adopt Scope 3 GHG Targets (1.5CAligned) at Shell PLC | PRI (unpri.org)
PMT (MN is the asset manager of PMT): pmt-stemtabel-2024.pdf
In Dutch: Stemmen opaandeelhoudersvergaderingen – PMT
Climate Action 100+ is an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. Over 700 investors are engaging companies on improving climate change governance, cutting emissions and strengthening climate-related financial disclosures, in order to create long-term shareholder value.
The Shell AGM will be held in London on May 21. The climate resolution supports Shell to align its medium-term Scope 3 emissions reduction targets with the Paris Climate Agreement.
Full text of the 2024 climate resolution
Shareholders support the Company, by an advisory vote, to align its medium-term emissions reduction targets covering the greenhouse gas (GHG) emissions of the use of its energy products (Scope 3) with the goal of the Paris Climate Agreement: to limit global warming to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C.
The strategy for achieving these targets is entirely up to the board.
You have our support
Shareholder resolution including supporting statement available here.
